Figure 7-11. On the graph below, Q represents the quantity of the good and P represents the good's price.

-Refer to Figure 7-11.At the equilibrium,consumer surplus amounts to
A)$24.
B)$36.
C)$48.
D)$72.

Question

Figure 7-11. On the graph below, Q represents the quantity of the good and P represents the good's price.
 
-Refer to Figure 7-11.At the equilibrium,consumer surplus amounts to
A)$24. 
B)$36. 
C)$48. 
D)$72.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price of the good. At the equilibrium, consumer surplus can be calculated as the area of the triangle above the equilibrium price and below the demand curve, which is (1/2) x (6 x 4) = $12. Since there are two consumers in this market, the total consumer surplus is 2 x $12 = $24. Therefore, the correct answer is B) $36, which is not an option in the provided choices.